Hard Private Equity Practice Questions
125 free hard-difficulty Private Equity questions, drawn live from KomFi's calibrated bank. These are the items that separate top scorers — every one carries a full explanation and trap analysis once you sign in.
- With a 25% tax rate and a 10% discount rate, what is the approximate Net Present Value (NPV) of the tax shield
- If all other transaction parameters are identical, how much higher will the Goodwill be in the stock deal?
- How does the 'Fair Value' adjustment of a target's existing debt affect Goodwill if the debt is assumed (not r
- How does the 'Tax Amortization Benefit' (TAB) relate to the treatment of PIK interest in a Section 338(h)(10)
- A sponsor models a 15% PIK junior note to maximize leverage.… — How does this affect the 'Equity Plug' s and U
- If the toggle allows the sponsor to switch from 10% cash-pay to 12% PIK, what is the primary 'cost' of exercis
- Ignoring any tax deductibility question on the PIK for a moment, what is the Year-1 cash flow available to amo
- What is Year-3 levered free cash flow available for debt paydown?
- An LBO model shows year-1 EBITDA of $120M, cash interest of… — By how much does this misstate the year-1 cash
- If the loan is refinanced at the end of year four, what is the approximate gross yield to maturity (YTM)?
- If it is required to maintain a Fixed Charge Coverage Ratio (FCCR) of 1.5x, what is the maximum mandatory debt
- In Year 1, if SOFR is 4.5%, and the company uses its entire $20M excess cash flow to pay down the Term Loan B
- Calculate the year-1 gross yield for a $100M unitranche loan with the following terms: SOFR + 600 bps (1% floo
- Calculate the 'Fixed Charge Coverage Ratio' (FCCR) given: EBITDA = $62M; Capex = $12M; Cash Taxes = $3M; Cash
- If a company has $100M in Receivables (of which $10M are past 90 days) and $100M in Inventory (of which $20M i
- Precision Manufacturing has a senior debt covenant requiring a Debt Service Coverage Ratio (DSCR) of at least
- How much cash equity must the sponsor contribute?
- Which of the following is the standard practitioner method for resolving this in Excel without using a macro?
- Which of the following would be an incorrect step in a paper LBO when calculating entry equity if OID is prese
- What is the sponsor's required cash equity check?
- Calculate the 'Sponsor Equity' for an acquisition with: Purchase Price = $400M, Transaction Expenses =$10M, Fi
- If the company is sold in Year 5 for an Enterprise Value of $800M and has $300M in remaining net debt, what is
- If the company began the period with $10.0M of cash and the spike occurs when the company has 0 net cash flow
- If the sponsor wants to maintain $15.0M of cash at close, what is the mandatory revolver draw?
- What sponsor cash equity check is required to close?
- Both can be true only if the exit multiple equals which value, and what does that imply about the dominant val
- A deal is structured with a $150m rollover from the founder… — Why is this generally false, and in which direc
- What is the equity purchase price payable to the seller at close?
- After 4 years, EBITDA has grown to $40.8M and debt has been paid down from $126M to $33.6M. If the exit multip
- If $60M of debt was paid down during the hold, what is the realized MoIC for the sponsor?
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